Ukraine under no circumstances to pay a political price for gas at $ 500, PM

"Under no circumstances, Ukraine will pay Russia $ 500 per thousand cubic meters of gas. This is not a market price, but a political one. There is no such a price in Europe. If Russia considers Ukraine as a “cash cow”, it is deeply mistaken", Ukrainian PM Arseniy Yatsenyuk said at a session of the Verkhovna Rada of Ukraine on Tuesday, June 3.

If a corresponding agreement with Russian Gazprom is not achieved in the framework of prearbitration settlement of the dispute, he has underlined, the Ukrainian side will appeal to the Stockholm Arbitration Court.

"I would like to declare clearly that the Ukrainian Government will use all means and methods to protect the legitimate rights of the Ukrainian state. We do not ask Russia for anything. We require a market-based approach. We require a contract to be signed. We are ready to pay, but a market price, not a political one", said Arseniy Yatsenyuk.

The Prime Minister stressed that the only acceptable gas price for Ukraine is the price of $268.

He reported that the optimistic scenario of the Government estimates a deficit of Naftogaz Ukrainy at UAH 62 billion, while the pessimistic provides for a UAH 93 billion deficit. Arseniy Yatsenyuk noted that "Yanukovych's government has not been paid nearly $ 1.5 billion for gas supplied in 2013." Also in 2013 the Russian company Gazprom paid full in advance for the transit of Russian gas: "So, $ 2.5 billion that we could get this year and pay for gas, have already gone."

Moreover, as the Prime Minister stressed, in January and February of this year were not paid fees: “Total debt for gas received by the current Government, when entering into office, amounted to $2.2 billion. If you add $2.5 billion that we had to get from Gazprom for the shipment of gas and the volume of loans and the total debt, thus the optimistic scenario estimates a deficit of Naftogaz Ukrainy at UAH 62 billion, while the pessimistic one - at UAH 93 billion."

Regarding the presence of gas in storages facilities, Arseniy Yatsenyuk informed that at the beginning of work of the current Government, Ukrainian storage facilities had in general 5 billion cubic meters of gas, indeed "only the buffer gas, which is almost impossible to lift to the surface": "As of today’s morning in Ukrainian gas storage facilities there are 12 billion cubic meters of gas. We have accumulated resources. Of course, these resources are insufficient. And in order to get through the winter, we need to buy no less than 7 billion cubic meters of gas."

The Prime Minister also reminded that the Ukrainian side has signed an agreement with the European partners on the so- called “small reverse”: "The first volumes of this reverse gas flow will enable us to cover the current demand for gas consumption. If in September-October we move toward a large reverse flow, it will give us additional opportunities for our energy independence. "

Arseniy Yatsenyuk also noted the position of the European Commission, personally European Commission President Jose Manuel Barroso and the Government of the Slovak Republic, "they helped Ukraine receive the first reverse flows of natural gas.”